Hibiscus Petroleum shares notch best day in four months after above-view results

TheEdge Tue, Feb 20, 2024 06:26pm - 1 month View Original


KUALA LUMPUR (Feb 20): Shares of oil and gas producer Hibiscus Petroleum Bhd climbed on Tuesday, after reporting better-than-expected October-December 2023 (2QFY2024) results amid strong market conditions.

The counter rose nine sen or 3.5% — its biggest gain since Oct 20, 2023 — to close at RM2.66, valuing the company at RM2.14 billion, after some 3.84 million shares changed hands. The FBM KLCI, meanwhile, was up 1.10%. 

The results were above estimates with the first half accounting for 64% of consensus FY2024 core net profit, said an analyst contacted by The Edge, who declined to be named. “We are looking to revise [our earnings forecasts and target price],” the analyst said.

Hibiscus Petroleum has racked up 4.7% gain so far this year amid broad rally in the energy sector, while Brent, the global benchmark for crude oil, remained above US$80 per barrel.

Six analysts covering the stock recommended investors to buy the stock with a 12-month median target price of RM4.08, Bloomberg data showed.

The company’s 2QFY2024 net profit climbed 45.22% to RM102.34 million, or 12.72 sen per share, from RM70.47 million a year earlier, driven by higher average realised oil prices and lower operating costs.

This was despite its quarterly revenue falling 12% to RM627.55 million, from RM713.13 million a year ago, mainly due to lower sales volume and average realised gas prices.

Net profit for the first half of financial year 2024 (1HFY2024) grew 24.74% to RM256.36 million, from RM205.73 million recorded in 1HFY2023, as revenue increased by 4% to RM1.37 billion from RM1.32 billion in the same period the prior year.

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